How are rates calculated?

What will you pay?

The amount you have to pay is based on the rateable value of your property. This is calculated by Valuation Office Agency (VOA), a government body that provides valuations and property advice that is needed to support taxation and benefits.

The occupier of the commercial property is almost always the individual that will have to pay business rates. Usually, this will be the owner, leaseholder or subtenant.

What if I don't pay?

Failure to pay

If you continue to ignore reminders and notices, you may be taken to court. Should it be found that you have not provided the payments required of you, then the council could resort to using a bailiff to seize your goods and possessions.

There is also the chance that you could end up being handed a prison sentence.

Am I exempt?

If you work from home, then you may not have to business rates. If you use a small part of your house to run a business (a spare bedroom converted into an office, for example) or your business is based around selling goods to be sent via post, then it’s unlikely you will have to pay business rates.

In some cases however...

There are particular scenarios that will result in you having to pay both council tax and business rates.